The term 'Managed Floating' exchange rate system means:
A. Exchange rate is fixed in terms of gold only
B. Exchange rate is determined by market forces with occasional central bank intervention
C. Exchange rate is completely fixed by the government
D. There is no role for the central bank
Answer: Option B
Solution (By JKSSB Mock Tests)
Under a managed floating system, the exchange rate is primarily determined by market forces, but the central bank intervenes occasionally to prevent excessive volatility.
Explanation:
The Kuznets hypothesis proposes an inverted-U relationship between income inequality and per capita income: inequality rises in the early stages of development and declines later.
Explanation:
The matching function in search-and-matching models describes how the flow of new hires depends on the number of unemployed workers and the number of job vacancies.
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